You’re barred! Furious landlord bans Rachel Reeves from her local pub over Chancellor’s tax hikes crippling the hospitality industry

Rachel Reeves has been banned from her local pub after hefty tax increases have brought the hospitality industry to its knees.

Landlord Martin Knowles told the Chancellor, who has been hit with a £2,500 increase in business rates, not to attempt a festive pint at the Marsh Inn in his Leeds constituency.

The Chancellor posed with Mr Knowles in his pub last July, shortly after taking over at the Treasury following Labour’s election victory, but the publican has now put up a sign making it clear that all Labor MPs, including Ms Reeves, are not welcome on his premises.

He said: ‘I considered banning them all, including the local MP, as they do our industry no favours. ‘Our customers seem quite happy with the ban.’

Skyrocketing National Insurance costs and Ms Reeves’ increase in the minimum wage have also pushed hundreds of pubs to the brink.

Despite the negative impact tax rises will have on the economy, the Chancellor announced this weekend that he could not rule out further tax rises in 2026.

Hospitality bosses have borne the brunt of his policies, particularly his business rates increases, which will see taxes on a typical pub double by 2029.

Nearly three pubs a week went bankrupt in the six months to October – an 85 per cent increase on the same period in 2024 – and it is estimated that a further 2,000 pubs may be forced to close next year unless the Government changes course.

Mr Knowles (pictured pointing at a ‘No to Labor MPs’ sign) bans Labor Chancellor as he faces £2,500 increase in business rates

Ms Reeves visited the pub last July, shortly after taking up her job at the Treasury following Labor’s election victory

Mr Knowles said if Ms Reeves was to be allowed back into her pub she would need to cut VAT and PAYMENT, stop increasing the minimum wage and stop business rates rising ‘all the way’.

He joins hundreds of landlords across the country who have banned Labor MPs because of the damage they are causing to their businesses.

They include TV presenter Jeremy Clarkson, who displayed a ‘No to Labor MPs’ sign at his Cotswolds pub, The Farmer’s Dog.

He explained: ‘Our annual business rates have grown astronomically from £28,000 to over £50,000. ‘This is a disgrace.’

Shadow Business Secretary Andrew Griffith said on Saturday night: ‘Business rate rises are hitting pubs with eye-watering increases. It’s no wonder Rachel Reeves was banned from her area.

‘Workers do not understand the business world. They must roll back these punitive changes before they plunge the British pub into extinction.’

Mr Knowles’ wife Melanie confirmed Ms Reeves ‘will never walk through the door again’ and added: ‘Every day is a struggle for us. Others close their doors and throw back their keys because they can no longer make a living. They can’t even break even.

‘It also comes down to the cost of living because customers are struggling and where is the first place you cut? Socialize. ‘This is because the Labor Government has made everything people need to do very expensive.’

Ms Reeves was also photographed having a pub lunch at The Britannia pub in her constituency last year, and they called on her in a social media post to ‘change the design and support pubs rather than tax them to death’.

Emma McClarkin, chief executive of the British Beer and Pub Association, said: ‘New sky-high business rates have left many publicans clueless and could threaten the existence of many pubs across the country.’

Dawn Hopkins, deputy chief executive of the Pub Campaign, added: ‘The government is in complete denial about the impact the betrayal of business rates will have on pubs.

The Marsh Inn in Pudsey, Leeds, now has a sign up making it clear that all Labor MPs are not welcome

Ms Reeves was also photographed having a pub lunch at The Britannia pub in her constituency last year – before they called on her in a social media post to ‘change the design and support pubs rather than tax them to death’.

‘They promised lower business rates, but instead pubs will face a massive increase and completely unsustainable bill levels next April. This is clearly an unfulfilled promise, but it’s also literally unfulfillable for bars. ‘The Government should think again if they do not want to be responsible for the closure of pubs in the country.’

In an interview with I Paper this weekend, Ms Reeves made no promises to ease tax rises, saying: ‘The world is incredibly unstable at the moment. It would be wrong to start writing future Budgets.’

He said only that his policies ‘will mean that further changes to the tax will be less necessary.’

On Saturday night the Treasury refused to comment on the Chancellor being banned from the local pub but a spokesman insisted: ‘We are protecting pubs, restaurants and cafes with the Budget’s £4.3bn support package.

‘This comes on top of our efforts to streamline licensing to help more venues serve drinks on the pavement and host one-off events, continue to cut alcohol duty on cask beers and cap Corporation Tax.’

He said Government assistance was also available to cap business rate bills for companies facing significant increases in their valuations.

Additional reporting: Jacinta Taylor